Page 19 - Policy Economic Report - Jan 2026

January 2026 POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

o While presenting the Budget, the finance minister stated that the government aims to “transform
aspiration into achievement and potential into performance.” She described this year’s Budget
as a Yuva Shakti–driven Budget with proposals emphasizing the strengthening of domestic
manufacturing, scaling high-growth services, and reinforcing infrastructure as key drivers of long-
term economic expansion.

o Three Kartavya (duties) guiding this year’s Budget
? Accelerating and sustaining economic growth by enhancing productivity,
competitiveness, and resilience amid volatile global dynamics.
? Fulfilling aspirations and building capacity by strengthening human capital, skills, and
institutional capabilities.
? Advancing Sabka Sath, Sabka Vikas by ensuring equitable access to opportunities across
regions, communities, and sectors.

o Under the first kartavya to accelerate and sustain economic growth, interventions were
proposed in six areas:
? Scaling up manufacturing in 7 strategic and frontier sectors;
? Rejuvenating legacy industrial sectors;
? Creating “Champion MSMEs;”
? Delivering a powerful push to Infrastructure;
? Ensuring long-term energy security and stability; and
? Developing City Economic Regions

o To develop India as a global Biopharma manufacturing hub, the Biopharma SHAKTI with an outlay
of ? 10,000 crores to build the ecosystem for domestic production of biologics and biosimilars will
be set up over the next 5 years. The Strategy will include a Biopharma-focused network with 3
new National Institutes of Pharmaceutical Education and Research (NIPER) and upgrading 7
existing ones.

o For the labor-intensive Textile Sector, an Integrated Programme with 5 sub-parts was proposed:
The National Fibre Scheme for self-reliance in natural fibres such as silk, wool and jute, man-made
fibres, and new-age fibres; Textile Expansion and Employment Scheme to modernize traditional
clusters with capital support for machinery, technology upgradation and common testing and
certification centers; A National Handloom and Handicraft programme to integrate and
strengthen existing schemes and ensure targeted support for weavers and artisans

o Recognizing MSMEs as a vital engine of growth, a dedicated ?10,000 crore SME Growth Fund was
proposed to create future Champions, incentivizing enterprises based on select criteria.

o Public capex has increased manifold from ?2 lakh crore in FY2014-15 to an allocation of ?11.2 lakh
crore in BE 2025-26. In FY2026-27, it is proposed to increase to ?12.2 lakh crore to continue the
momentum.

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